Globalisation Flashcards

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1
Q

What is globalisation?

A

international interconnectedness and interdependence of people with an integration of economies, where there is a fundamental transformation of economic, social, political and cultural forces
-lengthening, deepening, faster connections

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2
Q

What happens if there is a deeper depth of global connections?

A

country is more integrated

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3
Q

What is a throwaway society?

A

society strongly influenced by consumerism

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4
Q

What factors of globalisation lead to connections and interdependence

A
capital
commodities
information
tourists
migrants
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5
Q

How has transport and trade interlinked in the 19th and 20th Centuries until now?

A
  • constant feedback loop
    -transport has allowed trade to grow
  • 19th Cent Ford and other manufacturers were able to export
  • innovations in transport and trade:
    19th Cent steam power, railways, telephone, telegraph,
    20th Cent container ships, jet aircraft
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6
Q

What are the four strands of globalisation?

A

economic, social , political, cultural globalisation

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7
Q

What does spec say globalisation has accelerated due to?

A

rapid developments in
transport,
communications
and businesses.

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8
Q

What has the 21st Century been dominated by leading to more globalisation (spec)?

A

rapid development
in ICT and global communication (mobile phones, internet,social networking, electronic banking, fibre optics),
therefore lowering communication costs and contributing to time-space compression.

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9
Q

What helps economic globalisation?

A

TNCS, tech

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10
Q

What helps social globalisation?

A

international immigration
improvement in healthcare and education
online connectivity

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11
Q

What helps political globalisation?

A

trading blocs
World Bank, IMF, WTO
BRICs
MINT

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12
Q

What is in Bretton Woods Agreement?

A

WTO, World Bank, IMF

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13
Q

Difference between IMF and World Bank aims?

A

IMF wants to stabilise the world’s monetary system

World Bank wants to reduce poverty by providing assistance

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14
Q

What system did IMF set up? Why?

A

system of fixed exchange rates with the dollar as the international currency
to ensure global economic stability

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15
Q

What does World Bank do?

A

lend money often to developing countries to reduce poverty

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16
Q

Controversial World Bank

A

SAPs

Economic before social development

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17
Q

What does WTO do?

A

helps importers/exporters trade freely and smoothly w/ rules framework for trade agreements

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18
Q

What are IMF, World Bank, WTO all?

A

IGOs

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19
Q

5 trade blocs

A
EU
OPEC
ASEAN
Mercosur
NAFTA
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20
Q

Who is in OPEC?

A

African, S American, Middle East countries

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21
Q

Who is in ASEAN?

A

SE Asian countries (clue is in name)

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22
Q

Who is in Mercosur

A

South American countries

Argentina, Brazil, Paraguay and Uruguay

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23
Q

Who is in NAFTA?

A

Canada, Mexico, and the United States

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24
Q

Advantages of free trade blocs

A
  • helps developing countries
  • no tariffs
  • free borders
  • large market
  • promotes local goods
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25
Q

Cons of trade blocs

A
  • hard to get out of
  • loss of sovereignty
  • interdependence
  • comp
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26
Q

What does spec say national govs are key players in in terms of ….

A
  • promoting free trade blocs
  • polices (free-market liberalisation, privatisation,
    encouraging business start-ups).
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27
Q

What does spec say WTO, IMF, World Bank have contributed to globalisation through the promotion of…..

A

free trade policies and

foreign direct investment

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28
Q

What is free-market liberalisation/neoliberalism?

A

-removing government control and opening up the markets to privatisation, which will lead to capitalism, and therefore wealth

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29
Q

Characteristics of neoliberalism

A
privatisation 
stopping regulation corruption
business start up encouragement
spending cuts, especially on welfare
free trade
integration into global economy
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30
Q

Why was deregulation of City of London 1986 beneficial?

A

made it world’s leading global hub

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31
Q

How is neoliberalism imposed by IMF and World Bank?

A

SAPs

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32
Q

What are SAPs?

A

capitalist structural adjustment loans to remove gov controls and promote neoliberalism, with privatisation and lower tariffs, but cut health spending, leading to lower health status and social development

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33
Q

How has China changed its attitudes and economy? dates too

A
  • 1970 poor
  • 1976 Mao died
  • 1978 Deng Xiaoping introduced Open Door Policy, leading to more privatisation
  • 1980 joined World Bank and IMF, as well as four SEZs, bringing in FDI
  • 1990 stock markets in Shanghai and Shenzhen opened up
  • so in 90s, half a billion were lifted out of poverty
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34
Q

Is China completely open door?

A

YES - foreign TNCs can invest, FDI predicted over $1 trillion
NO - banning of foreign social media, only 34 foreign films screened p/year, strict controls on foreign TNCs

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35
Q

How has UK gov accelerated globalisation?

A

tax breaks +subsidies to companies who invest (most Canary Wharf companies given this)
subsidies to foreign manufacturing companies here

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36
Q

Four SEZ zones China 1980

A

Xiamen
Shenzhen
Zhuhai
Shantou

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37
Q

How has China accelerated globalisation?

A

open door policy 1978
welcomed foreign businesses ,as it needed Western tech
biggest recipient of FDI
investing in USA, EU, Africa

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38
Q

What are the diff types of FDI

A

offshoring
foreign mergers
foreign acquisitions
transfer pricing

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39
Q

What is offshoring

A

locating overseas for cheaper costs

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40
Q

Example of offshoring

A

Fender opened plant in Mexico in 1987

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41
Q

What is foreign acquisition

A

a TNC takes over company in another country

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42
Q

Example of foreign acquisition

A

2010 Kraft took over Cadbury

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43
Q

What is transfer pricing?

A

Companies put profit in lower taxed country for lower tax

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44
Q

Example of transfer pricing

A

Starbucks and Amazon have put profits through Ireland, (low taxed)

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45
Q

What is the KOF Index?

A

measures degree of globalisation with economic, social, political indicators

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46
Q

What are the two indexes that measure globalisation?

A

AT Kearney index,

KOF index

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47
Q

Why is KOF Index perhaps not modern enough?

A

made in 1970

factors such as TV ownership are less relevant

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48
Q

What type of globalisation does KOF Index put most weight on and least?

A

social

least on political

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49
Q

Why does KOF Index perhaps not show USA and China as globalised and can be criticised for?

A
  • they are more self-sufficient

- so indicators such as barriers to trade may not be relevant

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50
Q

Indicators in KOF Index (2 for each type)

A

FDI
Barriers to trade

No of Embassies
No of UN Peace missions

TV Ownership
No of Mcdonald’s Restaurants

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51
Q

What is the AT Kearney Index?

A
measures globalisation with four factors:
political engagement
technological connectivity
personal contact
economic integration
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52
Q

How is AT Kearney Index diff from KOF Index?

A

more holistic indicators, such as no of web servers rather than internet communications

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53
Q

Who were top 4 of AT Kearney Index 2015?

A

Sing.
Switz.
US
Ireland

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54
Q

What is the AT Kearney World Cities Index?

A

-a measure of how economically successful cities are

and includes TNC headquarters, museums, embassies

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55
Q

Who was top 4 AT Kearney World Cities Index 2016?

A

London
NY
Paris
HK

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56
Q

Why do some areas remain switched off (physical)?

A
  • poor agriculture
  • land locked (Niger)
  • natural hazard vulnerable (Mozambique)
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57
Q

Why do some areas remain switched off (human)?

A
  • corruption
  • lack of skills deters investment
  • politically isolated (NK)
  • low prices for food exports due to overproduction
  • ethnic clashes between tribes (DRC) hinder progress
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58
Q

What is a global production network? Example?

A

chain of suppliers of parts and materials that contribute to production of goods
Apple

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59
Q

Diff between outsourcing and offshoring

A

Outsourcing is when work is carried out in another country

offshoring is when it is overseas

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60
Q

How many suppliers does Kraft have for ingredients?

A

30,000

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61
Q

What is Just in Time?

A

companies lessen time between when product is produced, and when it is delivered, to cut costs

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62
Q

What is motive, means and mobility?

A

TNCS have shared motive to make money, and have the means to do so, and the mobility to carry goods and communicate

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63
Q

How have Taiwan, Vietnam, Kenya and the EU been influenced by globalisation?

A
  • Taiwan had sweatshops in 60s due to change in gov, then increasing workers, wages, and most competitive survived (Acer), so their democracy helped them trade
  • Vietnam has had Nike sweatshops so more children go school, higher wages, internal migration to South
  • Kenya’s gov has meant glob. is hindered, as people can’t own land, export restrictions, black market, protectionism, sales tax, but phones have helped
  • EU’s lower tariffs on Kenya’s flower exports has helped Kenya become leading flower exporter
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64
Q

Which two countries are good examples of how the global economic centre of gravity has shifted to Asia?

A

India

China

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65
Q

Why has Apple opened its first development centre in India?

A

to develop Apple Maps

high skilled yet cheap workers there

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66
Q

What will Apple’s new development centre in India bring?

A

4000 new jobs

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67
Q

How much of the Indian IT industry does Bangalore have?

A

40%

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68
Q

How many workers does the Indian IT industry in Bangalore employ?

A

nearly 10 million

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69
Q

Benefits of global shift to India

A
  • less unemployment
  • call centre workers paid better
  • economic growth by 6%/yr
  • more billionaires than UK
  • inspiring young entrepreneurs, such as EKO India Financial Services
  • growing middle class w/ more disposable income
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70
Q

Costs of global shift on India

A
  • overcrowding
  • still 60% of Mumbai in slums, who cannot work in services
  • widening income inequality
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71
Q

What percentage of the world’s computers does China manufacture?

A

50%

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72
Q

Who is the largest recipient of FDI?

A

China

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73
Q

Benefits of global shift for China

A
  • decreased poverty from 60% (1990) to 10%
  • improved transport such as high speed rail between Beijing and Guangzhou
  • more uni graduates
  • more middle class w/ disposable income
74
Q

Costs of global shift for China

A
  • pollution of water (Chongqing 80/101 forbidden toxins in tap water
  • air pollution = smog
  • sweatshops violate human rights
  • farmland degrading - 40%
75
Q

Benefits of all global shift according to Spec 3.4a

A
infrastructure
investment
waged work
poverty reduction
education 
training
76
Q

Costs of global shift according to Spec 3.4a

A

loss of productive land
unplanned settlements
environmental and resource pressure

77
Q

What have some communities in developing countries experienced due to global shift 3.4b

A
major environmental problems 
including air and water
pollution 
land degradation, 
over-exploitation of resources
loss of biodiversity, which impact on people’s health and
wellbeing.
78
Q

Some deindustrialised regions in developed countries face

what social and environmental problems as a result of economic restructuring EQ2 3.4c

A
dereliction
contamination
depopulation
crime
high unemployment
79
Q

What does the Clark Fischer Model show?

A

how different sectors (primary, secondary, tertiary, quaternary) rise and fall going through pre-industrial and post-industrial stages

80
Q

What percentage of UK is tertiary ?

A

over 80%

81
Q

Why has the UK economically restructured (shifting from a manufacturing to a service sector)?

A
  • mechanisation
  • deindustrialisation
  • reindustrialisation
  • tertiarisation
82
Q

What was announced about Redcar steelworks?

A

Thailand’s SSI announced it would be closing down

83
Q

How many job losses from Redcar closing down?

A

2200, as well as 900 in the supply chain

84
Q

What was Redcar named after it closed?

A

‘ghost town’

85
Q

What are threats to the UK steel industry?

A
  • less demand
  • competition from China who have lower prices
  • high costs of energy production
  • climate change policies adding costs
  • not enough gov compensation
  • EU rules restricting support
86
Q

How much less is Chinese steel sold for?

A

300 less euros per tonne

87
Q

Why do people believe it is important to save the British steel industry?

A
  • steel is vital
  • job losses - 18000, if gone
  • detrimental impact on other sectors
88
Q

What could the government do to save the British steel industry?

A
  • cut energy costs

- lessen other steel imports

89
Q

What is a megacity?

A

a city that has more than 10 million people

90
Q

Two terms for main causes for pop growth in megacities?

A

natural increase

rural-urban migration

91
Q

How many international migrants live in foreign countries?

A

250 million

92
Q

What are million cities?

A

cities with pop over 1 million

93
Q

Where are most megacities?

A

Asia have most
Americas
Middle
East

94
Q

In which continent are megacities growing most rapidly?

A

Asia

95
Q

What two resources have helped global hubs develop?

A

natural resources

human resources

96
Q

What are the natural resources that have helped global hubs develop?

A

oil
coastlines
low relief
good location

97
Q

What are the human resources that have helped global hubs develop?

A

large labour forces
affluence attracts FDI
skilled labour
multi-lingualism

98
Q

Three types of movement that have helped global hubs grow?

A

internal migration
elite international migrants migrating
low waged international migrants

99
Q

How much of UAE’s workforce is low skilled international migrants?

A

90%

100
Q

Which country has invested in the Shard and Canary Wharf?

A

Qatar

101
Q

What proportion of foreign residential purchases 2004-2014 were Russian?

A

a third

102
Q

Benefits of migration to host region?

A
  • less skill shortages
  • migrants willingly pay more rent
  • good form of soft powe
  • diversity
103
Q

Costs of migration to host region?

A
  • social tensions can lead to rise of far right parties, who then support racist immigrant restrictions
  • polarization
  • over-dependence
  • more greenhouse gas emissions (China)
104
Q

Benefits of people migrating from source region?

A
  • migrants return with new skills (Indian health clubs)
  • remittances
  • better policies to encourage people to come back
  • industrial land used for farming again
105
Q

How much of Nepal’s national income in 2015 was remittances?

A

25%

106
Q

Costs of people migrating from source region?

A
  • less young, skilled people
  • more international aid needed
  • services close, such as nightclubs in Warsaw 2004
107
Q

widening development gap extremities and disparities in

environmental quality are a result of what process?

A

globalisation

108
Q

What is development?

A

progress economically, environmentally, politically, culturally, socially
by improving quality of life

109
Q

Economic Indicators of development

A

HDI
GNI
GDP

110
Q

What does the development continuum show ?

A

how economic developed cities or countries are in comparison with each other

111
Q

How are countries placed on a development continuum?

A

they are placed at points on this line

least developed—————————-most developed

112
Q

What are the single economic indicators of development?

A

GNI

GDP

113
Q

What is GNI an acronym for ?

A

Gross National Income

114
Q

What is GNI?

A

total goods and services produced per year + net income locally and internationally - payments to other countries

OR

total income of pop

115
Q

What is GNI usually expressed as ?

A

per capita / person

116
Q

How is GDP slightly different to GNI?

A

does not include foreign earnings

117
Q

What is GDP sometimes expressed in which takes cost of living into account?

A

purchasing power parity

118
Q

Why is GDP sometimes expressed in purchasing power parity?

A

low cost countries will have higher GDP as it is more equal

119
Q

What is a composite economic indicator?

A

Economic Sector Balance

120
Q

What is Economic Sector Balance? Example Vietnam

A
  • what proportion the diff sectors have and how they contribute to GNI
  • in Vietnam the secondary sector has risen when primary sector has fallen
121
Q

Which model shows Economic Sector Balance?

A

Clark-Fischer Model

122
Q

Four limitations of economic indicators of development?

A
  • not always representative, as poverty in emerging countries decreases economic indicators, and elite could skew the GDP upwards
  • not always accurate if there is large informal sector
  • difficult to compare if PPP is not taken into account
123
Q

Single social Indicators of development

A
Infant Mortality Rate
Literacy rates
Enrollment in schools 
% Undernourished
Corruption Index
124
Q

Composite social indicators of development

A

HDI
GII
Happy Planet Index
GINI coeffient

125
Q

What does HDI rank countries according to?

A

Health
Education
Living Standards

126
Q

What is used to measure health for HDI?

A

life expectancy

127
Q

What is used to measure education for HDI?

A

mean years of schooling, expected years of schooling

128
Q

What is used to measure living standards for HDI?

A

GNI per capita

129
Q

What place is Australia’s HDI globally?

A

2nd

130
Q

What is the average years in education in Australia? (it’s good)

A

12 years

131
Q

What does GINI Coefficient show?

A

income inequality

132
Q

What proportion of countries publish GNI, and why don’t some publish it?

A

1/3

reluctant

133
Q

What is the diff between absolute poverty?

A

absolute is when you can’t even meet basic needs.

relative is when u can meet basic needs, but not to maintain the average standard of living

134
Q

Is North Africa switched on or off to globalisation?

A

switched on

135
Q

What has helped North Africa be switched on to globalisation?

A
  • French outsourcing
136
Q

Why has Africa been a loser of globalisation?

A
  • slow income growth

- inequality still in Sudan, Ethiopia, landlocked areas with politically corrupt governments

137
Q

Is income inequality increasing or decreasing everywhere?

A

increasing

138
Q

Pros of HDI

A
  • composite indicator, so holistic approach
  • shows the benefits of development to people
  • enables comparisons over time, as it has been measured for over 150 years
139
Q

Cons of HDI

A
  • doesn’t consider environmental costs of development
  • could be based on unreliable data, as some countries do not have sophisticated methods
  • does not show inequality
140
Q

What is GII an acronym for ?

A

gender income inequality

141
Q

How does GII measure ?

A

reproductive health
empowerment
labour force participation rate

142
Q

Which continents have most GII?

A

South America
South Asia
parts of Africa

143
Q

Limitations of social indicators of development?

A
  • hard to quantify some indicators like freedom of speech
  • some are misleading for development, as e.g high death rate could still be in a developed country
  • unreliable data in low income countries
144
Q

How do we show inequality?

A

Lorenz Curve

Gini Coefficient

145
Q

Where is air pollution causing premature deaths?

A

Chongqing

146
Q

Example of losing due to globalisation Bangladesh

A

mangroves cleared for prawns

147
Q

What has forest cover decreased from and to on Negros, a Philippine Island?

A

90% to 4%

148
Q

Why did Rio close Jardin Gramacho landfill?

A

leaking toxic waste onto bay

149
Q

What was the landfill called that Rio closed to promote recycling?

A

Jardin Gramacho

150
Q

Where is rubbish now managed in Rio?

A

Solid Waste Treatment Centre

151
Q

Where are residents encouraged to put rubbish compared to before?

A

bins

instead of around favelas

152
Q

What principle have Rio made for recycling?

A

Reduce-Reuse-Recycle-Hold Liable

153
Q

What have Rio started using the abundant algae for ?

A

fertiliser

154
Q

What is the five tier system for immigration in the UK?

A
Tier 1 - high value
Tier 2 - skilled workers
Tier 3 - lower skilled workers
Tier 4 - students
Tier 5 - temporary workers
155
Q

How has globalisation led to loss of control in goods on the Mekong River Delta?

A
  • higher demand then supply, so there have been 2000 international disputes on who can use which part of the river, what they can do there
  • so Mekong River Agreement set up
  • transboundary conflict with dams, e.g China HEP dams economically develop area, but displaces Cambodians
156
Q

When was the Mekong River Agreement set up?

A

1995

157
Q

Who are Canada First Nations?

A

aboriginal Canadian group

158
Q

How is Canada First Nations (aboriginal group in Canada) protecting the environment?

A

watch over endangered bears
note and stop changes in the area
negotiate treaties to reclaim land

159
Q

Why does Canada First Nations negotiate treaties to reclaim land?

A
  • it was originally Indigenous, but there were historical grievances of mismanagment
  • believe people should live in harmony with the environment
160
Q

What does Fairtrade advocate for?

A

fairer prices
better conditions
sustainability
fair terms of trade

161
Q

How do people in the developed world have the power by buying Fairtrade?

A

helps address injustices the poorest producers face

162
Q

Cons of Fairtrade (5)

A
  • a lot to apply - 2004 Euros, so richer farmers benefit more
  • sometimes goods, such as coffee, will be still still sold at lower market rates, as importers will simply not buy it otherwise
  • farmers often still earn same income
  • mixed reviews of fairtrade
  • farmers cannot go up in sectors, as they only get Fairtrade Premium if they are producing the crops that locked them in poverty
  • becoming harder to ensure money is distributed as Fairtrade grows
163
Q

What did Green and Black’s new bar in 2017 have on its label instead of another?

A

Cocoa Life certification instead of Fairtrade

164
Q

Why is it okay that the Green and Black’s new bar in 2017 had Cocoa Life on it?

A
  • in partnership with Fairtrade
  • still sustainable
  • competitive prices
165
Q

Con of Cocoa Life on Cadbury bars

A

not according to Fairtrade Standards of certification

166
Q

What is the local sourcing solution?

A

sourcing products and services from local areas instead of internationally

167
Q

Pros of local sourcing solution

A
  • reduces carbon footprint with shorter supply chains
  • benefits local suppliers
  • local preferences more easily met
168
Q

Cons of local sourcing solution

A
  • business may become over-dependent on customer
  • less economical development in not local places such as Ivory Coast
  • can increase carbon footprint when tomatoes are grown in heated greenhouses
169
Q

What is Todmorden trying to do?

A

local food for all

170
Q

How is Todmorden promoting local sourcing solution?

A
  • unpaid volunteers grow fruit and veg for everyone
  • tours for over 1000 visitors
  • free Harvest festival
  • free talks - Stephen Barstow, world-famous author and grower
171
Q

Why is Todmorden promoting local sourcing solution?

A

less food miles, more locally sustainable and beneficial, more people locally benefit with jobs

172
Q

What event incited high fashion brands to be more ethical? Year?

A

Raza Plaza factory collapse 2013

173
Q

What accord did H&M sign to be more ethical?

A

Bangladesh Safety Accord

174
Q

What is the Bangladesh Safety Accord?

A

contract to make inspections of 1000 factories

175
Q

How transparent have H&M been with partial supplier list?

A

transparent

176
Q

What do campaigners want H&M to be more ethical?

A

better living wages for workers

177
Q

Why is Topshop not ethical?

A
  • led by Arcadia, who never signed up to the Bangladesh Accord in 2013, and never joined the Ethical Trading Initiative, which is a very basic step to be more ethical
178
Q

How ethical has Zara been?

A

mixed - did compensate Bangladesh factory collapse victims and there are good trade unions

  • but it is ambiguous how many clothes are made in Europe, and some argue Zara is one of the worst players in fast fashion
179
Q

What do Gap and Nike do to prevent worker exploitation?

A

prohibit it

180
Q

Why is it hard to monitor worker exploitation?

A

so many factories

hard to control suppliers of suppliers

181
Q

Two examples of how NGOs are helping be ethical

A
  • Charity War on Want helped South African pickers

- Tesco told farm it would use diff fruit supplier until conditions improved